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Working Paper
Transitional dynamics of output and factor income shares: lessons from East Germany

I evaluate the quantitative implications of technology change and government policies for output and factor income shares during East Germany's transition since 1990. I model an economy that gains access to a high productivity technology embodied in new plants. As existing low productivity plants decrease production, the capital income share varies due to variation in the profit share of these plants. Two policies - transfers and government-mandated wage increases - have opposite effects on output growth, but both contribute to reducing the capital share during the transition. The model's ...
Globalization Institute Working Papers , Paper 43

Discussion Paper
Individual heterogeneity and interindustry wage differentials

Estimates of interindustry wage differentials are obtained using a fixed-effects estimator on a long panel, the National Longitudinal Survey of Young Men (NLS). After controlling for observable worker characteristics, 84 percent of the residual variance of log wages across industries is explained by individual fixed-effects. Only 16 percent of the residual variance is explained by industry dummies. Since no controls for specific job characteristics are used, job characteristics that vary across industries could potentially explain this rather small residual across-industry log wage variance ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 54

Cross-state evidence on the relationship between unemployment and wage growth

Chicago Fed Letter , Issue May

Employment versus wage adjustment and the U.S. dollar

Using two decades of annual data, we explore the links between real exchange rates and employment, wages and overtime activity in specific U.S. manufacturing industries. Across two-digit industry levels of aggregation, exchange rate movements do not have large effects on numbers of jobs or on hours worked. More substantial effects are picked up in industry wages, especially for industries characterized by low price-over-cost markup ratios, and in overtime wages and overtime employment. The industry-by-industry pattern of wage responsiveness is not strongly related to industry export ...
Staff Reports , Paper 56

Discussion Paper
Sectoral shift theories of unemployment: evidence from panel data

This paper examines the response of sectoral real wages and location probabilities to oil price shocks using U.S. micro-panel data (the National Longitudinal Survey of Young Men). The goal is to determine whether the observed response patterns are consistent with so-called sectoral shift theories of unemployment. These theories predict that shocks that change sectoral relative wages should increase unemployment in the short run and lead to labor reallocation in the long run. Consistent with these predictions, the oil price changes of the 1970s resulted in substantial movements in industry ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 28

Journal Article
Has deunionization led to higher earnings inequality?

Business Review , Issue Nov , Pages 3-12

Conference Paper
Price- and wage- inflation targeting - discussion


Working Paper
Wage growth and sectoral shifts: Phillips curve redux

Working Paper Series, Macroeconomic Issues , Paper 92-23

Working Paper
Health care costs, wages, and aging

While economists generally agree that workers pay for their health insurance costs through reduced wages, there has been little thought devoted to the level at which these costs are passed on: Is each employee's wage reduced by the amount of his or her own health costs, by the average health costs of employees in the firm, or by some amount in between? This paper analyzes one dimension of the question of how firms pass health costs to workers. Using cross-city variation in health costs, I test whether older workers pay for their higher health costs in the form of lower wages. I find that in ...
Finance and Economics Discussion Series , Paper 1999-19

Working Paper
How do retail prices react to minimum wage increases?

Working Paper Series , Paper WP-00-20



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Groshen, Erica L. 21 items

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